The main check on Sacramento excess has been a constitutional amendment requiring a two-thirds majority of both houses to raise taxes. Although Republicans have been in the minority for four decades, they could impose a modicum of spending restraint by blocking tax increases. If Democratic leads stick in two races where ballots are still being counted, liberals will pick up enough seats to secure a supermajority. Governor Jerry Brown then will be the only chaperone for the Liberals Gone Wild video that is Sacramento.

The high Democratic turnout in moderate and right-leaning districts helped the party pick up three seats in the senate and four in the assembly.

So now Californians will experience the joys of one-party, union-run progressive governance. Mr. Brown is urging lawmakers to demonstrate frugality and the "prudence of Joseph." As he said the other day, "we've got to make sure over the next few years that we pay our bills, we invest in the right programs, but we don't go on any spending binges." That's what all Governors say. Trouble is, merely paying the state's delinquent bills will require tens of billions in additional revenues if lawmakers don't undertake fiscal reforms.

With no GOP restraint, liberals can now raise taxes to pay for all this. [$200 billion in unfunded liabilities, the California State Teachers' Retirement System in need of $10 billion annually for the next 30 years to amortize its debt, $73 billion in outstanding bonds for capital projects and $33 billion in voter-authorized bonds, etc.]

They'll probably start by repealing Proposition 13's tax cap for commercial property. Democrats in the Assembly held hearings on the idea this spring. Then they'll try to make it easier for cities to raise taxes.

The greens want an oil severance tax. Other Democrats want to extend the sales tax to services, supposedly in return for a lower rate, but don't expect any "reform" to be revenue neutral. Look for huge union pay raises and higher pension benefits.

The silver lining here is that Americans will be able to see the modern liberal-union state in all its raw ambition. The Sacramento political class thinks it can tax and regulate the private economy endlessly without consequence. As a political experiment it all should be instructive, and at least Californians can still escape to Nevada or Idaho.

Law of the Funnel in Action

Big government and absurdly strong unions destroyed Greece and Spain. Expect no less for California.

Many large California corporations that can flee, will flee. Those stuck in California will see massive tax hikes (with many more to come) just so public unions and administrators can collect absurdly high salaries and benefits that most citizens can only dream about.

Economists expect the economy to grow at an annual rate of 1.8 percent in the current quarter, down from the previous estimate of 2.2 percent growth, according to the Philadelphia Federal Reserve's fourth-quarter survey of 39 forecasters.

While that left estimates for gross domestic product for the year unchanged at 2.2 percent, growth in 2013 looked modestly weaker with economists forecasting 2 percent, down from 2.1 percent.

Over the next three quarters, growth was seen averaging 2.1 percent, down from earlier expectations of 2.2 percent.

The unemployment rate was forecast to come in lower than expected, averaging 7.9 percent in the fourth quarter from the previous estimate of 8.1 percent. The monthly unemployment rate released by the government was 7.9 percent in October.

Still, unemployment was seen stuck at 7.9 percent in the first quarter of next year, and holding at 7.8 percent in the second and third quarters.

Economists raised their forecasts for inflation this quarter with the headline consumer price index seen averaging 2.3 percent, up from earlier estimates for 2.0 percent. For the year, CPI was expected to average 1.9 percent, up from 1.8 percent.

Given exports were recently revised up and imports revised lowered, I expected economists to think GDP would come in higher. It would have been interesting to see their reasons. Hurricane Sandy perhaps?

I expect the economy to weaken of course (and by far more in 2013 than the economists). Curiously the economists do not seem worried about the alleged fiscal cliff, at least for their GDP estimates.

I'm probably the only teacher in the state to vote against prop 30. Jobs are the only answer for raising revenue and this is a job killer, and now dems as far as the eye can see. Last one leaving the state please switch off the lights and wind turbines.

Dear California Conservatives,
Like East Germany of the past, please get out of California before they put up a fence to confine you and more importantly, your wealth, as property of the State. Texas will be glad to accept our liberty adhering brothers and sisters emigrating from a dictatorship.

I am a Californian and I completely agree. Actually, in a perverse way, I am glad the RATs now own California, because it will cause the financial crash to happen sooner. Cities and Counties are already going into bankruptcies, and they will multiply. It will be interesting to see if the State tries to bail them out. The PE pension system assumed in it’s model back in 2000 that the DOW would be at 28,000 by now and that their investments would bail them out. OOPS!

Californians fleeing California, please: Go to Texas. You can stop in Arizona long enough to get fuel and a bite to eat. If desperate, you can spend the night. Do NOT stay here for over 24 hours. We don't want you.

It is truely amazing to witness the morons of California. Rich poor and even bums all chant the same mantra of the brain washed left. The Mexicans just giggle at the stupidity of gringos. These idiots just passed a retroactive sales tax. Twenty five cents on the dollar is owed by any business that sold goods. So pretty soon the goods will be drying up.

Why does everybody think things will get better after a collapse? We will still have the same cast of characters all with their hands out. The unions will still control the politicians and the permanent underclass will still be the voting majority. We will just become a pemanent third world state.

I tell my students that I can run any business in America as long as I can borrow money. I’m going to tell them that I can also run any level of government as long as I can borrow money. California got a reprieve by having Obama be re-elected. Obama’s not going to let California go down the tubes. They vote Democrat. Obama will find a way to use federal money to bail California out. Jerry Brown is one happy man.

24
posted on 11/11/2012 9:00:48 AM PST
by blueunicorn6
("A crack shot and a good dancer")

I have previously commented on Calif Prop 13 and the attack beginning on commercial property. For those who don’t know, property tax in CA is set at the time of purchase at 1% plus local taxes that make it about 1.2-1.3% of purchase price. That is locked in and can only increase 2% of the total per year. A $300,000 purchase will have first year tax of about $3750. It can go up $75 the next year.

I knew that when they had a super majority, the RATS would attack Prop 13, which they have despised and targeted since its passage in 1978. The first area, as the article indicates is commercial property. The RATS think they can go after commercial property owners first because they will pose less opposition at this time than homeowners. But that will be coming.

In college I taught real estate law and economics. You do not have to have such background, however, to know what is going to happen when a commercial property owner gets a tax increase. Of course, that increase is passed onto the tenant. And, of course, that increased business cost is passed onto consumers. We pay more for goods. Well, poor people, get ready for that.

31
posted on 11/11/2012 9:08:25 AM PST
by doug from upland
(Obama and the leftists - destroying our country one day at a time)

Californians fleeing California, please: Go to Texas. You can stop in Arizona long enough to get fuel and a bite to eat. If desperate, you can spend the night. Do NOT stay here for over 24 hours. We don't want you.

Libertarians, who are a much more unified group than conservatives or Republicans, tried to get a significant percentage of their numbers to move to one state in order to improve their chances to elect candidates to their liking.

They should have chosen a state like North Dakota, but instead settled on the fairly attractive state of New Hampshire, i.e. on the coast, no income taxes, good jobs in Massachusetts, etc.

To date, however, very few have moved to the state and it has drifted further to the left and away from its motto of "Live Free or Die".

It's a nice thought having conservatives move to California, but it ain't gonna happen.

California isn't a "swing state," so Democrats in Washington can pretty much take it for granted. If you are a state and you really want to grab a lot of Federal dollars, you should do one or both of the following: (1) make sure your popular vote in presidential elections is never more lopsided than 52%-48% one way or another, and (2) make sure you elect one Democratic and one Republican U.S. Senator. That's how the game is played, folks.

Here in San Diego, always thought of as a conservative city, We got Bob Filner as mayor (Filner as in "I am a congressman and can do what ever I want and you can't do anything about it). I wondered why we had a big acorn voter registration in 2008, I guess I know now. The demonrats are like the Al-Qaeda and make plans to be used later.

Oh, you’ll never have to convince me of that. I really daily reports from the shipping industry about what goes on all over North America, and I find myself shaking my head at some of the idiocy I see at the Ports of Los Angeles and Long Beach. With all of the added costs and regulations in place out there, they wonder why more and more shippers are doing business with other ports instead.

Californians fleeing California, please: Go to Texas. You can stop in Arizona long enough to get fuel and a bite to eat. If desperate, you can spend the night. Do NOT stay here for over 24 hours. We don't want you.

If you think about it, the people fleeing California are probably the people you would want to stop in your state...people from the interior, red as blood, getting out while they still can.

BTW: You're next, Arizona...have you looked at the colors of your counties after this election? You're bluer than California.

42
posted on 11/11/2012 9:25:43 AM PST
by hattend
(Firearms and ammunition...the only growing industries under the Obama regime.)

Prepare to keep bailing them out over and over. Do you think Obama is going to let the poster child of Progressivism fail ? We will all fail at once. The demise will be blamed on Capitalism, like it was in 2008. The media will go right along and, well, at least we get to see the looks on the welfare crowd when they realize they’re not going to get as much stuff and they’re going to have to work for it for the good of the collective.

That is smart politics. I would still take a look at the money coming out of California to Democrat causes and candidates. Plus, look at California’s Electoral College votes. You are looking at this from the viewpoint of a citizen of a state. I’m trying to look at it as a Democrat. Politics is a sham and a cover for Democrats to make money. The Democrat leaders are just grifters.

“Understand yourself and understand your opponent, and in one hundred battles, you will not be defeated.”

44
posted on 11/11/2012 9:26:23 AM PST
by blueunicorn6
("A crack shot and a good dancer")

I’m a native Californian and I am out here visiting family now. This state has gone to hell. I can’t believe they voted in all these new taxes. It’s going to kill business! I wouldn’t blame them for moving to TX. However, I’m all for taking it back. There are plenty of hard working people still here.

Are you saying they will claim that, since Oregon, without a sales tax, borders California, they can postulate (deem) that a certain amount of goods were purchased by Californians in Oregon and no sales tax was paid at the time, therefore, Oregon owes California?

49
posted on 11/11/2012 9:39:37 AM PST
by Anima Mundi
(You can lead a brain to facts but you can't make it think.)

Disagree. Anyone who has stayed in California this long is someone who is far too comfortable with big government. And no, Arizona is NOT bluer than California. West Tucson is very blue, but the rest of the state is far from being like California.

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